Cineworld Group 2017 Results. 15 th March 2018

Transcription

1 Cineworld Group 2017 Results 15 th March 2018

2 Overview

3 Summary of 2017 another record year Reached the milestone of 100m admissions Overall strong financial performance for the Group, EBITDA growth of 13.2%, 8.4% in constant currency Group revenue growth of 11.6% Adjusted diluted EPS growth of 12.1% to 38.9p Record growth achieved in Poland, Romania, Hungary & Czech Republic Clear progress made against our strategy Adjusted EBITDA growth of 12.7% Full year dividend increased by 12.6% to 21.4p

4 Financial Review

5 Financial Highlights Group 2017 Group 2016 Statutory Movement Admissions 103.8m 100.3m 3.5% m m Box office % Retail % Other % Total revenue % Adjusted EBITDA % Adjusted profit before tax % Adjusted diluted EPS 38.9p 34.7p 12.1% Adjusted diluted (rights adjusted) EPS 17.3p 15.4p 12.3% Statutory revenue growth of 11.6% (constant currency at 8.0%) Statutory Adjusted EBITDA (1) growth of 12.7% (constant currency 7.4%) Adjusted diluted EPS up 12.1% to 38.9p Adjusted diluted EPS (rights adjusted) of 17.3p Net debt of 278.3m (31 December 2016: 282.3m) Net debt to EBITDA ratio reduced to 1.4 Increased the full year cash dividend paid by 14.5%. Final adjusted dividend per share of 3.1p 1. Adjusted EBITDA is defined as Operating profit before depreciation and amortisation, onerous leases and other non-cash items, impairments and reversals of impairments, transaction and reorganisation costs, gains and losses on disposals of assets and subsidiaries and the settlement of the defined benefit pension liability.

6 Performance summary UK & Ireland ROW Group 2017 Movement versus Movement versus Movement versus 2016 Admissions 53.0m 2.3% % % m m m Box office % % % Retail % % % Other % % % Total revenue Adjusted EBITDA Adjusted EBITDA Margin % % % % % % 19.0% (0.7)% 26.9% 1.0% 22.3% 0.3% Group revenue growth of 8.0% 2.3% increase in the UK box office revenues (total market increased by 1.4% - source IBOE) Group Adjusted EBITDA growth of 7.4% Group Adjusted EBITDA margin increased to 22.3% Benefit of operating in nine territories in mature and developing markets

7 Box Office & Retail Performance Ro Hu Is Po UK 2017 Admissions Bu Ro UK m UK Is Hu Poland 17.7m Hungary - 9.4m Romania - 8.5m Israel - 6.6m Czech - 5.1m Bulgaria -2.1m Slovakia - 1.4m UK Admissions = 53.0m +2.3% ATP = % SPP = % ROW (constant currency) Admissions = 50.8m +4.7% ATP = % SPP = %

8 Other income Other income includes revenue from advertising, distribution, screen and event hire and online booking fees Overall it has increased by 9.9% (8.0% on a constant currency basis) UK & Ireland performance + 2.3% Advertising performed well benefitting from increase in admissions Disposal of small alternative content distribution outfit in Picturehouse ROW performance + 8.3% (constant currency) Strong performance from advertising revenues Distribution revenues largely in-line year on year

9 Group profit and loss m Revenue Adjusted EBITDA Depreciation and amortisation (68.1) (58.6) Exceptional cost (1.9) (4.4) Operating profit Finance expense (7.8) (14.6) Profit before tax Tax charge (19.9) (16.2) Profit after tax Adjustments Adjusted profit after tax Includes 5.1m of amortisation related to intangible assets which were identified as part of the Cinema City business combination. The 1.9m net exceptional items includes the following items: 7.8m of reorganisation costs 1.3m of onerous lease property charges (5.2)m net credit in relation to impairments (2.0)m one off gain relating to the disposal of Picturehouse Entertainment Net finance expense of 7.8m includes 6.3m in respect of interest on bank loans and overdrafts included a foreign exchange loss of 6.1m

10 Growth in the adjusted diluted EPS of 12.1% m m Adjusted EBITDA Depreciation and amortisation (68.1) (54.0) Adjusted Operating profit Finance expense (2.6) (10.4) Adjusted profit before tax Tax (21.3) (17.6) Adjusted profit after tax Adjusted diluted EPS Adjusted items Amortisation of Cinema City intangibles Exceptional items Foreign exchange translation movements on Euro Term Loan and exceptional hedge item Profit on disposals (2.0) - Total adjustments Tax (1.4) (1.4) Total post tax adjustments

11 Cash flow statement and net debt m Cash Bank loans Other Net Debt Opening position at 1 January (322.0) (16.1) (282.3) Operating profit Non-cash movements 56.6 (1.4) (1.0) 54.2 Cash generated from operations (1.4) (1.0) Tax paid (12.0) - - (12.0) Net cash flows from investing activities (110.7) - - (110.7) Net cash flows from financing activities (54.6) (4.8) 1.3 (58.1) Forex and other non-cash movements 4.2 (1.8) 2.4 Closing position at 31 December (330.0) (15.8) (278.3) Of the net 56.6m non-cash movement, 68.1m relates to the add back of depreciation and amortisation Investing activities include 7.0m paid for Newcastle Empire and 106.2m of capital expenditure Financing activities primarily include Drawdown on facility of 17.4m 53.8m dividend payment Loan repayments of 11.1m Interest paid of 6.6m Adjusted EBITDA to net debt ratio reduced to 1.4 times

12 Financial Outlook Strong film slate for 2018 Encouraging performance for January and February across all territories Capital expenditure for 2018 expected to be approximately 80m for the UK/ROW Focus on cash generation to reduce the net debt to adjusted EBITDA ratio Cost of debt expected to be circa 4%

13 Business Update

14 Key Achievements 103.8m admissions Completion post year end of Regal Entertainment acquisition Nine new openings Acquisition of Empire Newcastle Leading technological innovation Six refurbishments completed

15 Next generation cinemas 109 new screens UK & Ireland Leeds 11 screens Ely 6 screens South Ruislip 11 screens Bracknell 12 screens ROW Zichron Israel 12 screens Galata Romania 8 screens Bialoleka Poland 11 screens Chodov Czech Republic 18 screens Wroclaw Poland 20 screens

16 Next generation cinemas refurbishments Continued delivery of refurbishments with the following completed in 2017 Ipswich Extension and refurbishment Northampton Refurbishment including a Superscreen Solihull Refurbishment including Superscreen and Starbucks Hemel Hempstead one of the Empire sites acquired, refurbishment including Starbucks Arkadia (Poland) leading cinema in Warsaw Mokotow (Poland) opened in 1999

17 Technological Innovation 2016 NEW 2016 NEW 2016 NEW

18 Retail Offerings 2016 NEW NEW

19 The New Cineworld

20 Regal acquisition Acquisition completed on 28 th February 2018 Cineworld Group is now the second largest Cinema chain in the world (by number of screens) Encouraging performance for US box office in January and February Integration plan progressing as expected

21 What is coming? 19 sites, (3 already opened),176 screens (27 already opened)planned to open in (1 opened) sites in the US 6 (2 opened) sites in the UK 3 sites in the ROW Further refurbishments planned in the UK and ROW Plans for first cinema refurbishments progressing well Continued focus on customer experience to be The Best Place to Watch a Movie

22 2018 Key Titles

23 2019 and beyond Key Titles

24 Q&A

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